Analytical Procedures Can Be Very Effective in Detecting Inventory Fraud

question 70

Multiple Choice

Analytical procedures can be very effective in detecting inventory fraud.Which of the following analytical procedures would not be useful in detecting fraud?

• A)Gross margin percentage
• B)Inventory Turnover
• C)Cost of sales percentage
• D)Accounts receivable turnover

Understand the use of run charts and control charts in monitoring process quality.

Recognize the differences between quality control attributes and variables.

Calculate and interpret control limits for quality control charts.

Understand the foundations and importance of ethics in business and accounting.

---

Definitions:

White Police Officer

A law enforcement officer identified as being of European descent or Caucasian, relevant in discussions about racial dynamics and policing.

Conforming Behavior

Actions that align with the norms, values, or expectations of a social group or society.

Group Pressure

The influence exerted by a group on individuals within it to align their behavior with the group’s norms.

Philip Zimbardo

Philip Zimbardo is a psychologist renowned for his research on social psychology, particularly the Stanford prison experiment, which explored the effects of perceived power and environment on behavior.